This Big Private Bank Has Announced 1:5 Bonus Issue-Record Date:26th August 2025

📰 Karur Vysya Bank Announces 1:5 Bonus Share Issue After Seven-Year Gap

Karur Vysya Bank Bonus Announcement:In a significant move aimed at rewarding shareholders and reinforcing investor confidence, Karur Vysya Bank Limited (KVB) has announced a bonus share issue in the ratio of 1:5, marking its first such corporate action in seven years. The decision was approved during the bank’s board meeting held on 24th July 2025, and is subject to shareholder approval at the upcoming Annual General Meeting (AGM).

Karur Vysya Bank Bonus Announcement : Under the proposed scheme, shareholders will receive one bonus equity share of ₹2 face value for every five fully paid-up equity shares they hold as of the record date, which has been set for 26th August 2025. This move is expected to enhance liquidity in the stock and make it more accessible to retail investors, without altering the bank’s market capitalization.

📈 Strong Financials Back the Bonus Issue

Karur Vysya Bank Bonus Announcement :The bonus announcement coincides with the release of KVB’s Q1 FY26 financial results, which reflect a robust performance across key metrics. The bank reported a 13.5% year-on-year increase in net profit, reaching ₹521 crore, up from ₹459 crore in the same quarter last year. Net interest income rose by 5.1% to ₹1,080 crore, while operating profit climbed to ₹805.5 crore.

Asset quality also showed marked improvement. Gross Non-Performing Assets (GNPA) dropped to 0.66% of gross advances, down from 1.32% a year ago, and Net NPA fell to 0.19%, compared to 0.38% in the previous year. The Provision Coverage Ratio (PCR) improved to 96.76%, indicating a strong buffer against future credit risks.

💬 Leadership Commentary

Ramesh Babu B, Managing Director & CEO of Karur Vysya Bank, expressed satisfaction with the bank’s performance, stating, “We are pleased to report that our performance indicators align with our previously issued guidance. Notably, we successfully front-loaded growth in the first quarter of this financial year, consistent with our approach over recent years”.

🏦 Growth Momentum Continues

KVB’s total deposits as of 30th June 2025 stood at ₹1,06,650 crore, reflecting a 15.49% year-on-year growth, while total advances reached ₹89,374 crore, up 15.01% from the previous year. The bank’s balance sheet size expanded to ₹1,25,371 crore, a 15.27% increase over the same period.

📊 Market Reaction

Following the announcement, KVB’s stock closed marginally lower at ₹269.85 on the BSE. However, the stock has shown strong momentum in recent months, gaining over 19% in the past six months and rallying more than 790% over the past five years, underscoring long-term investor confidence.

This bonus issue, the fourth in the bank’s history, follows previous issuances in 2002 (1:1), 2010 (2:5), and 2018 (1:10). With its latest move, Karur Vysya Bank continues to demonstrate its commitment to shareholder value and sustainable growth.

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